Sharekhan's research report on Hindustan Unilever
Driving growth in core categories through premiumisation, market development through new launches, cluster-based approach through WIMI strategy and expansion of distribution network remain key growth drivers. Revenues to clock CAGR of 14% over FY2022-24. Consistent fall in key input prices (palm oil prices corrected by 50% from highs) and price hikes will help margins improve from H2FY2023. Balance sheet stays strong on steady fall in working capital days (by 12 days in FY2022) and consistent improvement in cash flows and higher dividend payout (90% in FY2022).
Outlook
We maintain a Buy rating on Hindustan Unilever Ltd (HUL) with an unchanged PT of Rs. 2,850. Leadership position in 80% of portfolio, improving growth outlook and a healthy balance sheet with consistent cash flows makes it a best pick in FMCG space. Stock trades at 59.0x/48.9x its FY2023E/24E EPS.
More Info
At 17:30 Hindustan Unilever was quoting at Rs 2,528.35, down Rs 31.05, or 1.21 percent.
It has touched an intraday high of Rs 2,563.10 and an intraday low of Rs 2,519.60.
It was trading with volumes of 143,104 shares, compared to its thirty day average of 98,956 shares, an increase of 44.61 percent.
In the previous trading session, the share closed down 0.41 percent or Rs 10.65 at Rs 2,559.40.
The share touched its 52-week high Rs 2,859.10 and 52-week low Rs 1,901.80 on 21 September, 2021 and 08 March, 2022, respectively.
Currently, it is trading 11.57 percent below its 52-week high and 32.95 percent above its 52-week low.
Market capitalisation stands at Rs 594,058.91 crore.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.